With everything going on in Venezuela, Venezuelan oil is certainly one of the big topics. News has it that the United States tapping into Venezuela’s oil could mean serious relief for Bitcoin miners struggling with sky-high power bills.
For years, under President Nicolás Maduro, countries like Iran, China, and Russia have had the edge on Venezuelan oil. Many people who oppose the U.S.’s capture of President Nicolás Maduro say the U.S. also has the hidden agenda of controlling the troubled country’s oil.
Things heated up after the US began grabbing Venezuelan oil tankers back in December, paving the way for access to those whopping 303 billion barrels of proven reserves following the dramatic capture of President Nicolás Maduro over the weekend.
Right now, Chevron’s the lone big US player on the ground in Venezuela, but President Donald Trump is reportedly rallying other big names to jump in and ramp up production of Venezuelan oil.
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Venezuelan oil and crypto
Meanwhile, analysts at crypto exchange Bitfinex are going gaga about how US firms diving into Venezuela’s massive crude reserves might drive down electricity costs worldwide, boosting miner profits and kicking off a fresh wave of growth.
“Plenty of cheaper energy flowing from Venezuelan oil would juice up margins for miners everywhere and potentially kickstart a whole new era of expansion, especially in spots locking in solid long-term power deals,” Bitfinex noted in their latest report.
They point out that even pulling a small slice of Venezuelan oil onto the market could noticeably ease energy prices.
For Bitcoin miners getting hammered by a 25% dip from the coin’s peak, tougher mining challenges, and soaring power costs, this could be a lifeline.
Crude prices already dipped after the recent events, with the US benchmark sliding to around $58 a barrel, down a few percent from December highs, offering a bit of breathing room since so much electricity ties back to oil.
That said, cranking up Venezuelan oil output won’t happen overnight.
“Real boosts in production could take years, depending on how smoothly the US navigates the political handover and eases remaining sanctions,” the analysts cautioned.
One expert from crypto firm 21Shares echoed that, saying it might take a full decade and more than $100 billion in upgrades to get Venezuelan oil flowing like it did in its heyday.
Back in the 1970s, Venezuela pumped about 3.5 million barrels daily, claiming a solid chunk of global supply.
But decades of turmoil have slashed that to roughly 1 million barrels now, with inflation wiping out the currency’s value since 2013 and all sorts of disruptions.
In fact, recently Venezuelans have been taking refuge in stablecoins amidst the economic hardships.
